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Online retailers face rental hikes due to warehouse shortage

Online retailers in the UK could face rental hikes of up to 10% due to an expected shortage of warehouse space, according to a report by property experts.

There will be a shortage of warehouses over 100,000 sq ft in size within 10 months, found the research by estate company Colliers International, UMC Architects, project management firm Kam Project Consultants and supply chain consultancy Total Logistics.

Steven Mitchell, industrial and logistics director of Colliers International, said the shortfall in some areas, such as the Southeast, could see rents increase between 5% and 10% by the end of 2016.

He also warned that delivery times could lengthen.

Any firm wanting to expand should look early and property developers should look to build more, the group of companies said.

Readers' comments (1)

  • One of the reasons online retailers are facing the warehouse space challenge is linked to the capacity within their warehouses being used for Returns.

    For Online Fashion, 1 in 3 items is being returned to warehouses, which also impacts reverse logistics across the supply chain.

    With sq ft space at a premium, in warehouses, the need to tackle the returns challenge is even greater.

    This will not only improve efficiencies across the supply chain, but also increase retained revenue and build customer lifetime loyalty.

    Isabel Rhodes - Head of Operations at Clear Returns

    Unsuitable or offensive? Report this comment

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